*ST Middle Velvet ((000982): Progress Of Shareholders' Litigation Matters

Announcement of progress made by Limited by Share Ltd of Ningxia Bank of China on shareholder matters related to litigation

All members of the company and the board of directors guarantee the authenticity, accuracy and completeness of the information disclosure. There is no false record, misleading statement or major omission.

I. The basic situation of the cases concerned

In December 17, 2019, Ningxia Ningxia silver cashmere industry Limited by Share Ltd (hereinafter referred to as "company" or "cashmere industry") disclosed the Ningxia Heng Tian Silk Road Industrial Investment Fund partnership (limited partnership) (hereinafter referred to as "Heng Tian Silk Road Fund") to apply for the realization of hypothecation security interest in Futian District people's Court (hereinafter referred to as the "court"), asking for auction or sale of Ningxia silver cashmere industry. International Group Limited (hereinafter referred to as "Zhong Rong Group") holds 400 million shares of the Bank of China's cashmere industry, and the proceeds are paid first.

For details of the case, please refer to the announcement of the Ningxia Bank of China (Limited by Share Ltd) on the litigation of controlling shareholders of the company (Announcement No. 2019-130), which was disclosed by our company on December 17, 2019.

In March 13, 2020, the Heng Tian silk road fund received the civil summons of the Futian District people's Court on the above matters. The case was heard at 10:30 on March 27, 2020. The company's information was disclosed in March 14, 2020. The content is referred to the "Ningxia Bank of China" Limited by Share Ltd's disclosure of the controlling shareholder of the company in March 14, 2020, which was disclosed by the company in March 14, 2020. Progress Bulletin of the item (Bulletin number 2020-22).

Two. The latest developments in the relevant cases.

In April 20, 2020, the Heng Tian silk road fund received the civil ruling of the people's Court of Futian District, Shenzhen [[2019] Guangdong 0304 min te 3984], ruling as follows:

It is permitted to auction and sell the Ningxia Ningxia silver cashmere industry Limited by Share Ltd, which is held by the Bank of China (cashmere) International Group Co., Ltd. (securities referred to as: cashmere industry, securities code: 000982) 400 million shares of negotiable shares. The applicant Ningxia Heng Tian Silk Road Industrial Investment Fund partnership (limited partnership) disposes of the above shares.

The proceeds from the fruits shall enjoy the priority of repayment within the range of 1422934605.89 yuan of the principal amount of the creditor's rights.

The application fee is 3578236.51 yuan (the applicant has already paid in advance) and is borne by the respondent. If he disagrees with this ruling, he shall raise objection to the court within fifteen days from the date of receiving this ruling.

Three. Other related information.

The company will pay close attention to the progress of the above litigation and fulfill the obligation of information disclosure in time according to the information disclosure requirements. In addition, in January 7, 2020, the company disclosed the announcement of the progress made by Limited by Share Ltd of the Ningxia cashmere industry Limited by Share Ltd on matters related to the controlling shareholder of the company (announcement number: 2020-02). The Heng Tian Jiye (Shenzhen) Investment Center (limited partnership) and the Jiashi Capital Management Co., Ltd. (hereinafter referred to as "harvest capital") have applied to the court for the implementation of the Cashmere Group. A total of 81 million 496 thousand shares of the Bank of China's cashmere industry accounted for 16.93% of the 481496444 stake in the cashmere industry, accounting for 1.9122% of the total share capital of the company.

Based on the uncertainty of the auction or sale of the shares mentioned above, the Cashmere Group will lose part of the equity interest, resulting in a further reduction in the shareholding ratio of its stake in the Bank of China. The company will pay close attention to the progress of the above litigation and fulfill the obligation of information disclosure in time according to the information disclosure requirements.

As a result of the implementation of the reorganization plan, the company's total share capital has increased to 4261877053 shares, and the Heng Tian Jin Shi Cci Capital Ltd (hereinafter referred to as "Heng Tian Jinshi") has directly held and shares the shares held by the listed companies of the Heng Tian Poly letter (Shenzhen) Investment Center (limited partnership) and Heng Tian Jia Ye (565438). 176 shares, accounting for 13.2674% of the total share capital of listed companies, are the controlling shareholders of the company.

As of the announcement date, the Cashmere Group holds 481496444 shares of the company, accounting for 11.2978% of the total share capital of the company, and is the second largest shareholder of the company. The total amount of shares held by the Cashmere Group is 481496000 shares, accounting for 11.2977% of the total share capital of the company.

99.9999%, the 481496444 shares of the company in the cashmere group were all frozen by the judiciary and their shares had been frozen for 11 times.

The company solemnly reminding investors: the giant wave information network www.cninfo.com.cn and China Securities Daily, the Shanghai Securities Journal, the securities times, and the Securities Daily are the information disclosure media selected by the company. All the information of the company is based on the information published in the above designated media.

Risk.

Four. Reference documents

Shenzhen Futian District people's court civil ruling [[2019] Guangdong 0304 min te 3984]. Notice hereby.

The board of Limited by Share Ltd of Ningxia BOC cashmere industry

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